According to basic supply and demand they may actually be too high.That said, if the landlord is paying for all of the utilities, taxes and insurance the tenants should be ok with paying more than any other space nearby.

I lived most of my life nearby and know there are still areas of the city that are ripe for redevelopment. 

Great group of people, I'm sure you'll find somebody nearby.

With a little luck I’ll be moving to Austin Texas next year, and I’d love to invest in the area or in a nearby, less expensive suburb of Austin.

If your deal makes sense and there are recently sold comparable properties nearby then you will have an easier time finding financing closer or at your desired rate/ltv than if you have a property in a rural area with no comps. 

If you have an attraction or college nearby or a major hospital or are off the beaten path where people like to check out for a weekend, you are probably going to make more than a regular tenant, but if there is nothing to draw people into your town on its own, it will be harder to do better.

As Newark is densely populated, there's high probability for nearby benchmark properties to compare.  

Find a title company nearby and go talk to them about your situation.They probably need to do some kind of quiet title lawsuit, but there is some chance they have some other ways to get it done.

Yes, they'll use nearby homes of a similar size, but they'll use your photos, the description, and any of the features or amenities you add.

The only thing that comes to mind is the bidders own property nearby and want to ensure the property remains open space.